Tips on Selling Undeveloped Land

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Developing a selling strategy for undeveloped land can be a challenge, especially if the parcel is a long way from local amenities. Sellers of undeveloped land may need to bring extra creativity to the table to overcome the obstacles involved, such as the lack of financing options for buyers, the cost of removing debris or rubbish, or zoning restrictions.

Research

The details involved in developing land can be more significant than one might think. Land owners will be smart to to do as much research as possible in order to have answers to potential buyers' questions. Contacting the local health department may be required for septic tank specifications, and the possibility of further subdividing the land may be a key point. Additionally, water availability, access to electricity, sewage and solid waste disposal, zoning issues and local amenities must be considered.

Developers

If the subject parcel is good sized, for example several acres, a local developer may be interested in buying it. Often developers will take raw land and turn it into either a subdivision for single family dwellings, or perhaps a shopping center depending on zoning and county regulations. If development is headed towards the property, you might see a high degree of interest. Calling around to local developers in the area is a good way to begin mixing it up with people who may be interested in buying.

Land Home Package

Another possible way to market raw, undeveloped land is to advertise a potential floor plan for the lot. Meeting with a builder, and obtaining pricing for a plan that fits the lot and neighborhood can help buyers visualize a home where nothing is currently located. Often, real estate agents will actually market this potential home for the vacant lot as a "to be built" dwelling, and when a buyer is interested, the builder can begin construction after purchasing the land.

Seller Financing

The lack of financing options for raw and undeveloped land may lead a land owner to sell the parcel using owner financing methods. This can enable buyers who don't have the cash or financing abilities to purchase the land. Sellers will not only receive ongoing payments from the buyer, but extra income from the added interest as well. Listing seller financing as an option in marketing materials can widen the circle of potential buyers and attract more interested parties.